IRS FORM 944. Instructions: Select any any line or box for IRS instructions and QuickBooks information and troubleshooting steps.

Transcription

1 IRS FORM 944 Instructions: Select any any line or box for IRS instructions and QuickBooks information and troubleshooting steps. Select to get back to the main form. For more information see: Form 944: Instructions for Form 944:

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3 Employer Identification Number (EIN) Employer identification number (EIN). To make sure that businesses comply with federal tax laws, the IRS monitors tax filings and payments by using a numerical system to identify taxpayers. A unique nine-digit EIN is assigned to all corporations, partnerships, and some sole proprietors. Businesses needing an EIN must apply for a number and use it throughout the life of the business on all tax returns, payments, and reports. Your business should have only one EIN. If you have more than one and aren't sure which one to use, write to the IRS office where you file your returns (using the Without a payment address under Where Should You File, later) or call the IRS at or (toll call). If you don't have an EIN, you may apply for one online by visiting IRS.gov/EIN. You may also apply for an EIN by faxing or mailing Form SS-4 or SS-4PR to the IRS. Employers outside of the United States may also apply for an EIN by calling (toll call). If you have applied for an EIN but don't have your EIN by the time a return is due, write Applied For and the date you applied in the space shown for the number. Online: This number is pulled from the Company Federal Tax Information window. Desktop: This number is pulled from the Company Information window. To verify your EIN Online: Select the Gear icon > Payroll Settings > Federal Taxes. Under Federal Tax Setup, update your EIN. Desktop: To change your EIN, click on Company and then on My Company. Click the edit icon and click the Company Information tab. Enter the correct EIN in the Federal Employer Identification Number field, and click OK. You will have to create a new form once you've changed your company EIN. CAUTION: If you re filing your tax return electronically, a valid EIN is required at the time the return is filed. If a valid EIN isn't provided, the return won't be accepted. This may result in penalties. TIP: Always be sure the EIN on the form you file exactly matches the EIN the IRS assigned to your business. Don't use your SSN or ITIN on forms that ask for an EIN. Filing a Form 944 with an incorrect EIN or using another business's EIN may result in penalties.

4 Name, Trade Name and Address Employer Identification Number (EIN), Name, Trade Name, and Address Review the IRS Instructions for Form 944, Name (not your trade name) How QuickBooks populates this line Online: QuickBooks Online pulls this information from the data provided in the Company General Tax Information window. Desktop: QuickBooks Desktop pulls this information from data provided in the Company Information window. To verify your QuickBooks Online: Select the Gear icon > Payroll Settings > General Tax information. Under Company General Tax Information update your Filing Name. Desktop: From the Company menu, choose My Company. Click the edit icon and click the Legal Information tabs to make any necessary corrections, and click OK. You will have to create a new form once you've change your company address. Trade Name (if any) How QuickBooks populates this line Online: QuickBooks Online pulls this information from the data provided in the Account and Settings window. Desktop: QuickBooks Desktop pulls this information from data provided in the Company Information window. To verify your QuickBooks Online: Select the Gear icon > Account and Settings. Select the Edit icon next to Company name to your DBA name. Desktop: From the Company menu, choose My Company. Click the edit icon and click the Contact Information tab to make any necessary corrections, and click OK. You will have to create a new form once you've change your company address. Address How QuickBooks populates this line Online: QuickBooks Online pulls this information from the data provided in the Company General Tax Information window. Desktop: QuickBooks Desktop pulls this information from data provided in the Company Information window. To verify your address Online: Select the Gear icon > Payroll Settings > General Tax information. Under Company General Tax Information update your Filing Address. Desktop: From the Company menu, choose My Company. Click the edit icon and click the Contact Information and Legal Information tabs to make any necessary correction to the address, and click OK. You will have to create a new form once you've change your company address.

5 Line 1 - Wages, tips, and other compensation Wages, Tips, and Other Compensation Enter amounts on line 1 that would also be included in box 1 of your employees' Forms W-2. Include sick pay paid by a third party if you were given timely notice of the payments and the third party transferred liability for the employer's taxes to you. See the General Instructions for Forms W-2 and W-3 for details. If you re a third-party payer of sick pay, don't include sick pay that you paid to policyholders' employees here if you gave the policyholders timely notice of the payments. QuickBooks calculates the total wages, tips, bonuses, overtime pay, etc., that are subject to federal income tax, and paid to the employee during the reporting year. Wages earned in the reporting year, but paid in the following year, are not included. Certain deductions that are not taxable to federal income tax such as 401(k), pre-tax medical, fringe benefits, etc., can affect this box. Click to learn about the Taxability of pay types and deductions how they affect this box. To verify QuickBooks Online: Select Reports and search for the Payroll Details Report. Filter by the Quarter and include All Employees, then click Run Report. Scroll to the bottom.. Review the total wages and deductions for the quarter affected, subtracting pre-tax items that are not included in Line 2 such as 401(k), pre-tax medical, fringe benefits, etc. Desktop 1. Run the Payroll Item Listing Report. 2. Filter the report and, in the Columns, clear everything but the Payroll Item and Tax Tracking type. 3. Print the report. Put a check mark next to any item that has a tax tracking type of Compensation, Reported Tips, Dependent Care FSA, Section 457 Distribution, Non-qual. Plan Distr, Fringe Benefits, Other, Moving Expenses, 401(k), 403(b), 408(k)(6)SEP, Elective 457(b), Simple IRA, Taxable Grp Trm Life, Pro Tip: Line 1 only includes wages subject to Federal Income Tax and is reduced by deductions that are exempt. Med Care Flex Spend, Premium Only/125, SCorp Pd Med Premium. 4. Run a Payroll Summary report for the entire calendar year. 5. Click Customize Report. 6. Click the Filters tab. 7. Under Current filter choices, click Payroll Item. 8. In the drop-down line in the middle, pick Multiple Payroll Items. 9. Check off all the payroll items you marked earlier. 10. Run the report and add the amount for Adjusted Gross Pay to Total Employer Taxes and Contributions. The total should equal line 1 on Form 944. To modify tax tracking for any payroll item: 1. Go to the Payroll Item List. 2. Double click the payroll item in question. 3. Click Next until you get to Tax Tracking Type. 4. Correct the tracking type, and click Next until you reach Finish. This will correct the form, but if the taxability changed, a Payroll Checkup should be run to correct the taxable wage bases.

6 Line 2 - Federal income tax withheld from wages, tips, and other compensation Federal Income Tax Withheld From Wages, Tips, and Other Compensation Enter the federal income tax that you withheld (or were required to withhold) from your employees on this year's wages, tips, taxable fringe benefits, and supplemental unemployment compensation benefits. Don't include any income tax withheld by a third-party payer of sick pay even if you reported it on Forms W-2. You will reconcile this difference on Form W-3. CAUTION: References to federal income tax withholding don't apply to employers in American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the U.S. Virgin Islands, and Puerto Rico, unless you have employees who are subject to U.S. income tax withholding. QuickBooks adds the total of the Federal Withholding (FIT) from the paychecks for the quarter. How to verify your QuickBooks Desktop result. Online: Run a Payroll Details Report. Look for the FIT amount and compare the numbers. Desktop: Run the Payroll Summary report for the calendar year. The total of the Federal Withholding will be line 2. If you have DIY payroll: If an employee's federal withholding is incorrect, a liability adjustment for that employee will need to be entered. The amount of the adjustment may then need to be collected from or refunded to the employee. To prevent this from occurring in the future, obtain an updated W-4 from your employee, and: Online 1. Click Workers > Employees tab and click the employee name to access their Employee details. 2. Click Edit Employee to update the employee information. 3. Scroll to Step 4, withholding and click the Edit icon. 4. Update the withholding information as needed. Desktop 1. Go to the Employee Center and click the Employees tab. 2. Double-click the employee's name. 3. Click the Payroll Info tab. 4. Click the Taxes button. 5. Correct the filing status and allowances as necessary.

7 Line 3 If No Wages, Tips, and Other Compensation are Subject to Social Security or Medicare Tax If No Wages, Tips, and Other Compensation are Subject to Social Security or Medicare Tax If no wages, tips, and other compensation on line 1 are subject to social security or Medicare taxes, check the box on line 3 and go to line 5. If this question doesn't apply to you, leave the box blank. For more information about exempt wages, see section 15 of Pub. 15, section 12 of Pub. 80, or section 15 of Pub For religious exemptions, see section 4 of Pub. 15-A, Employer's Supplemental Tax Guide. QuickBooks does not check this box for you.

8 Line 4a Taxable social security wages Taxable social security wages. Enter the total wages, sick pay, and fringe benefits subject to social security taxes that you paid to your employees during the year. For this purpose, sick pay includes payments made by an insurance company to your employees for which you received timely notice from the insurance company. See section 6 in Pub. 15-A for more information about sick pay reporting. Enter the amount before deductions. Don't include tips on this line. For information on types of wages subject to social security taxes, see section 5 of Pub. 15, section 4 of Pub. 80, or section 5 of Pub For 2017, the rate of social security tax on taxable wages is 6.2% (0.062) for the employer and employee, or 12.4% (0.124) for both. Stop paying social security tax on and reporting an employee's wages on line 4a when the employee's taxable wages (including tips) reach $127,200 for the year. However, continue to withhold income and Medicare taxes for the whole year on wages and tips even when the social security wage base of $127,200 has been reached. line 4a (column 1) x line equals 4a (column 2) Continued on next page

9 Line 4a Taxable social security wages continued QuickBooks pulls column 1 from the wage base of the Social Security payroll item minus the wage base tips. Column 2 is a calculated amount. To verify your QuickBooks Online: 1. Select Reports and search for Payroll Details Report. 2. Next to Date Range select a quarter, then click Run Report. 3. Under Total view the wage totals and subtract the tips totals. The result should match column 1 in Line 4a. Desktop 1. From the Reports menu, choose Employees & Payroll, and then Payroll Summary. 2. Click the Customize Report button. 3. Click the Display tab and then select the calendar year from the Dates drop-down list. 4. In the Display columns by drop-down list, select Total Only, and clear the Hours and Rate checkboxes. 5. Click the Filters tab. 6. Choose Payroll Item in the Filter drop-down list, and then choose Multiple payroll items in the Payroll Item drop-down list. 7. In the Payroll Item window, select Federal Withholding, Medicare Company, Medicare Employee, Social Security Company, and Social Security Employee. 8. Clear any other selected items, and click OK. 9. Click OK to return to the Payroll Summary report. 10. Double-click the Social Security Employee Total amount to display the Transactions by Payroll Item report. The Wage Base column total minus the Wage Base (Tips) column total should equal the line 4a, Column 1, amount. To correct line 4a, column 1: The wage base amount uses each paycheck and year-to-date adjustment entered into QuickBooks Desktop for the quarter. If the wage base amount is incorrect, your payroll items may be set up incorrectly. Verify the setup of all payroll items used in the calendar year by choosing Payroll Item List from the Lists menu, and then doubleclick each payroll item to review or correct it. To locate and fix any incorrect employee wage bases, choose Run Payroll Checkup from the Employees menu. Once the wage bases for the employees are fixed, QuickBooks Desktop will adjust social security and Medicare by the correct amounts on the next paycheck, if still in the same calendar year. If the calendar year has passed or amended 944 forms need to be filed, contact your accountant. Enter in any liability adjustments as needed. Keep in mind that adjusted amounts may need to be collected from or refunded to the employee. Report QuickBooks Desktop pulls column 1 from the wage base of the Social Security payroll item minus the wage base tips. Column 2 is a calculated amount. Pro Tip: This line only includes wages subject to Social Security (except tips), it s not uncommon for this line to be different then wages reported in Line 1. Previous page

10 Line 4b Taxable social security tips Taxable social security tips. Enter all tips your employees reported to you during the year until the total of the tips and wages for an employee reach $127,200 for the year. Include all tips your employees reported to you even if you were unable to withhold the 6.2% employee's share of social security tax. Don t include service charges on line 4b. Your employee must report cash tips to you by the 10th day of the month after the month the tips are received. The report should include charged tips (for example, credit and debit card charges) you paid over to the employee for charge customers, tips the employee received directly from customers, and tips received from other employees under any tip-sharing arrangement. Both directly and indirectly tipped employees must report tips to you. No report is required for months when tips are less than $20. Employees may use Form 4070 (available only in Pub. 1244), or Form 4070-PR (available only in Pub PR), or submit a written statement or electronic tip record. line 4b (column 1) x equals line 4b (column 2) Continued on next page

11 Line 4b Taxable social security tips continued QuickBooks pulls amounts for column 1 from the wage base tips of the Social Security payroll item. Column 2 is a calculated amount. To verify your QuickBooks Online: 1. Select Reports and search for Payroll Details Report. 2. Next to Date Range select a quarter, then click Run Report. 3. Under Total, view the tips totals Desktop 1. From the Reports menu, choose Employees & Payroll, and then Payroll Summary. 2. Click the Customize Report button. 3. Click the Display tab and then select the calendar year from the Dates drop-down list. 4. In the Display columns by drop-down list, select Total Only, and clear the Hours and Rate checkboxes. 5. Click the Filters tab. 6. Choose Payroll Item in the Filter drop-down list, and then choose Multiple payroll items in the Payroll Item drop-down list. 7. In the Payroll Item window, select Federal Withholding, Medicare Company, Medicare Employee, Social Security Company, and Social Security Employee. 8. Clear any other selected items and click OK. 9. Click OK to return to the Payroll Summary report. 10. Double-click the Social Security Employee Total amount to display the Transactions by Payroll Item report. The Wage Base column total minus the Wage Base (Tips) column total should equal the line 4a, Column 1 amount. To correct, line 4b, column 1: The wage base amount uses each paycheck and year-to-date adjustment entered into QuickBooks Desktop for the quarter. If the wage base amount is incorrect, your payroll items may be set up incorrectly. Verify the setup of all payroll items used in the calendar year by choosing Payroll Item List from the Lists menu, and then double-click each payroll item to review or correct it. To locate and fix any incorrect employee wage bases, choose Run Payroll Checkup from the Employees menu. Once the wage bases for the employees are fixed, QuickBooks Desktop will adjust social security and Medicare by the correct amounts on the next paycheck, if still in the same calendar year. If the calendar year has passed or amended 944 forms need to be filed, contact your accountant. Enter in any liability adjustments as needed. Keep in mind that adjusted amounts may need to be collected from or refunded to the employee. Report Run a payroll summary for the entire calendar year. Double-click either the total of Social Security Employee or Social Security Company. Previous page

12 Line 4c Taxable Medicare wages and tips Taxable Medicare wages and tips. Enter all wages, tips, sick pay, and taxable fringe benefits that are subject to Medicare tax. Unlike social security wages, there is no limit on the amount of wages subject to Medicare tax. The rate of Medicare tax is 1.45% (0.0145) each for the employer and employee, or 2.9% (0.029) for both. Include all tips your employees reported during the year, even if you were unable to withhold the employee tax of 1.45%. line 4c (column 1) x equals line 4c (column 2) For more information on tips, see section 6 of Pub. 15, section 5 of Pub. 80, or section 6 of Pub Continued on next page

13 Line 4c Taxable Medicare wages and tips continued QuickBooks supplies the number for column 1 from the wage base of the Medicare payroll item. Column 2 is a calculated amount. To verify your QuickBooks Online: 1. Select Reports and search for the Payroll Tax and Wage Summary Report. 2. Next to Date Range select a quarter, then click Run Report. 3. Under Federal Taxes (941/944), view the taxable wages for Medicare. Desktop 1. From the Reports menu, choose Employees & Payroll, and then Payroll Summary. 2. Click the Customize Report button. 3. Click the Display tab and then select the calendar year from the Dates drop-down list. 4. In the Display columns by drop-down list, select Total Only, and clear the Hours and Rate checkboxes. 5. Click the Filters tab. 6. Choose Payroll Item in the Filter drop-down list, and then choose Multiple payroll items in the Payroll Item drop-down list. 7. In the Payroll Item window, Medicare Company and Medicare Employee. 8. Clear any other selected items and click OK. 9. Click OK to return to the Payroll Summary report. 10. Double-click the Medicare Employee Total amount to display the Transactions by Payroll Item report. The Wage Base column total should equal the line 4c, Column 1 amount. To correct line 4c, column 1: The wage base amount uses each paycheck and year-to-date adjustment entered into QuickBooks Desktop for the quarter. If the wage base amount is incorrect, your payroll items may be set up incorrectly. Verify the setup of all payroll items used in the calendar year by choosing Payroll Item List from the Lists menu, and then double-click each payroll item to review or correct it. To locate and fix any incorrect employee wage bases, choose Run Payroll Checkup from the Employees menu. Once the wage bases for the employees are fixed, QuickBooks Desktop will adjust Social Security and Medicare by the correct amounts on the next paycheck, if still in the same calendar year. If the calendar year has passed or amended 944 forms need to be filed, contact your accountant. Enter in any liability adjustments as needed. Keep in mind that adjusted amounts may need to be collected from or refunded to the employee. Pro Tip: This line only includes wages subject to Medicare, it s not uncommon for this line to be different then wages reported in Line 1. Previous page

14 Line 4d Taxable wages and tips subject to Additional Medicare Tax withholding Taxable wages & tips subject to Additional Medicare Tax withholding. Enter all wages, tips, sick pay, and taxable fringe benefits that are subject to Additional Medicare Tax withholding. You re required to begin withholding Additional Medicare Tax in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Additional Medicare Tax is only imposed on the employee. There is no employer share of Additional Medicare Tax. All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Pub. 15. For more information on Additional Medicare Tax, go to IRS.gov/ADMT. Once wages and tips exceed the $200,000 withholding threshold, include all tips your employees reported during the year, even if you were unable to withhold the employee tax of 0.9%. line 4d (column 1) x equals line 4d (column 2) Continued on next page

15 Line 4d Taxable wages and tips subject to Additional Medicare Tax withholding continued QuickBooks supplies the number for column 1 from the wage base for the Medicare Employee Addl Tax payroll item. Column 2 is a calculated amount, but it should match the amount of tax withheld as calculated by QuickBooks Desktop (within a few cents rounding difference). To verify your QuickBooks Online: 1. Select Reports and search for Payroll Details Report. 2. Next to Date Range select a quarter, then click Run Report. 3. Find employees that grossed over $200,000 for the year. The difference between the total and $200,000 is what will appear in Line 5d column 1. (Example: Employee One made $250,000. $50,000 will be in box 5d column 1). Desktop 1. From the Reports menu, choose Employees & Payroll, and then Payroll Summary. 2. Click the Customize Report button. 3. Click the Display tab and then select the calendar year from the Dates drop-down list. 4. In the Display columns by drop-down list, select Total Only, and clear the Hours and Rate checkboxes. 5. Click the Filters tab. 6. Choose Payroll Item in the Filter drop-down list, and then choose Multiple payroll items in the Payroll Item drop-down list. 7. In the Payroll Item window, select Medicare Employee Addl Tax. 8. Clear any other selected items, and click OK. 9. Click OK to return to the Payroll Summary report. 10. Double-click the Medicare Employee Addl Tax Total amount to display the Transactions by Payroll Item report. The Wage Base column total should equal the line 4d, Column 1 amount. The Amount column total should equal line 4d, column 2 (within a few cents rounding difference). To correct line 4d, column 1: The wage base amount for Medicare Employee Addl Tax uses each paycheck and year-to-date adjustment entered into QuickBooks Desktop for the year once the employee's wages exceed $200,000 as long as the payroll item was on the employee's record before the employee was paid $200,000. If the wage base amount is incorrect, your payroll item may be set up incorrectly, or you may not have had the Medicare Employee Addl Tax payroll item added to the employee's record before the employee was paid $200,000. Verify the setup of the Medicare Employee Addl Tax payroll item. As long as you have at least one transaction with the Medicare Employee Addl Tax payroll item on the employee record, you can locate and fix any incorrect employee wage bases by choosing My Payroll Service > Run Payroll Checkup from the Employees menu. If any wage bases require correction, QuickBooks Desktop will post a liability adjustment to the employee if still in the same calendar year. Enter in any liability adjustments as needed. Keep in mind that adjusted amounts may need to be collected from or refunded to the employee. If the calendar year has passed or amended 944 forms need to be filed, contact your accountant. If you didn't set up the Medicare Employee Addl Tax payroll item and didn't withhold this tax from employee's wages over $200,000, you'll need to report this to the IRS following the instructions here. (If you're a QuickBooks Desktop Payroll Assisted user, you need to contact Assisted Payroll support at for assistance.) Previous page

16 Line 4e Total social security and Medicare taxes Total social security and Medicare taxes. Add the column 2 amounts on lines 4a 4d. Enter the result on line 4e. QuickBooks adds column 2 of lines 4a, 4b, 4c, and 4d. To verify your QuickBooks Use the verification steps for lines 4a, 4b, 4c, and 4d.

17 Line 5 - Total taxes before adjustments Total Taxes Before Adjustments Add the total federal income tax withheld from wages, tips, and other compensation from line 2 and the total social security and Medicare taxes before adjustments from line 4e. Enter the result on line 5. QuickBooks calculates the amount by adding lines 2 and 4e.

18 Line 6 - Current year's adjustments Current Year's Adjustments Enter tax amounts that result from current period adjustments. Use a minus sign (if possible) to show an adjustment that decreases the total taxes shown on line 5. Otherwise, use parentheses. In certain cases, you must adjust the amounts you entered as social security and Medicare taxes in column 2 of lines 4a 4d to figure your correct tax liability for this year's Form 944. See section 13 of Pub. 15, section 9 of Pub. 80, or section 12 of Pub Online: Not supported. If there are adjustments for sick pay, tips, or groupterm life insurance, you can t use our form. Manually fill out a blank 944 and submit directly to the IRS. Desktop: You must manually enter the number to add any sick pay or adjustments to tips and group-term life insurance. If you need to adjust any amount reported on line 6 from a previously filed Form 944, complete and file Form 944-X. Form 944-X is an adjusted return or claim for refund and is filed separately from Form 944. See section 13 of Pub. 15 or section 9 of Pub. 80. Adjustment for fractions of cents. Enter adjustments for fractions of cents (due to rounding) relating to the employee share of social security and Medicare taxes withheld. The employee share of amounts shown in column 2 of lines 4a 4d may differ slightly from amounts actually withheld from employees' paychecks due to rounding social security and Medicare taxes based on statutory rates. Adjustment for sick pay. Enter the adjustment for the employee share of social security and Medicare taxes that were withheld and deposited by your third-party sick pay payer with regard to sick pay paid by the third party. These wages should be included on line 4a, line 4c, and, if the withholding threshold is met, line 4d. If you are the third-party sick pay payer, enter the adjustment for any employer share of these taxes required to be paid by the employer. Adjustments for tips and group-term life insurance. Enter adjustments for: Any uncollected employee share of social security and Medicare taxes on tips, and The uncollected employee share of social security and Medicare taxes on group-term life insurance premiums paid for former employees.

19 Line 7 - Total taxes after adjustments Total Taxes After Adjustments Combine the amounts shown on lines 5 and 6 and enter the result on line 7. QuickBooks calculates this amount by adding lines 5 and 6.

20 Line 8 - Qualified small business payroll tax credit for increasing research activities Qualified Small Business Payroll Tax Credit for Increasing Research Activities Enter the total amount of the credit from Form 8974, line 12. If you enter an amount on line 8, you must attach Form QuickBooks does not supply this number because the new reporting process for this credit requires business financial information. For more information on how to claim the credit, refer to article Claiming the Federal Research & Development Credit.

21 Line 9 - Total taxes after adjustments and credits. Total Taxes After Adjustments and Credits Subtract line 8 from line 7 and enter the result on line 9. If line 9 is less than $2,500, you may pay the amount with Form 944 or you may deposit the amount. If line 9 is $2,500 or more, you generally must deposit your tax liabilities by EFT. However, if you deposited all taxes accumulated in the first three quarters of the year and your fourth quarter liability is less than $2,500, you may pay taxes accumulated during the fourth quarter with Form 944. The amount shown on line 9 must equal the amount shown on line 13m. Online: This is not supported in QuickBooks Online. Desktop: QuickBooks subtracts line 8 from line 7. For more information and rules about federal tax deposits, see Must You Deposit Your Taxes, earlier, and section 11 of Pub. 15, section 8 of Pub. 80, or section 11 of Pub CAUTION: If you re a semiweekly depositor, you must complete Form 945-A, Annual Record of Federal Tax Liability. If you fail to complete and submit Form 945- A, the IRS may assert deposit penalties based on available information.

22 Line 10 - Total deposits for this year Total Deposits for This Year Enter your deposits for this year, including any overpayment that you applied from filing Form 944-X, 944-X (SP), 941-X, or 941-X (PR) in the current year. Also include in the amount shown any overpayment from a previous period that you applied to this return. Continued on next page

23 Line 10 - Total deposits for this year QuickBooks adds all the deposits for Federal Withholding, Medicare Employee, Medicare Employee Addl Tax, Medicare Company, Social Security Employee, and Social Security Company with a paid through date that falls within the year the 944 is reporting. Desktop: If you need to include a prior quarter's overpayment, right click and override the amount listed to add the overpayment. Online: Online is not able to edit the boxes within the forms. You will need to update the payments to pull the overpayment to the report. To verify your QuickBooks Online 1. Select Reports and search for Payroll Tax Payments. 2. Next to Date Range select the year, then click Run Report. 3. View the tax payments made. If line 13 does not match, then the payments need to be verified and updated. Desktop 1. Run the Payroll Liability Balances report for the year the 944 is reporting. 2. Click Customize Report. 3. Change the Display columns by option to Total only. 4. Click the Filters tab 5. Click Payroll Item under Current Filter Choices. In the middle, click the drop-down next to Payroll Item and pick Multiple Payroll Items. Check off only Federal Withholding, Medicare Employee, Medicare Employee Addl Tax, Medicare Company, Social Security Employee, and Social Security Company, and click OK. 6. Click the Transaction Type under Choose Filter on the left. In the middle, click the drop-down next to Transaction type and choose Payroll Liability Check. Click OK. 7. The total balance should equal the amount of line 8. This can be double-clicked to see the transactions that contribute to the total. Double check that all deposits have been recorded. If you know you've made a deposit but don't see it, expand your date range to see if the deposit appears. If it does, double-click that deposit and change the Paid Through date so that it falls within the quarter it's supposed to. If the number on line 8 doesn't match the report that was made, then a liability adjustment has been entered or a payment was entered incorrectly. To find a liability adjustment: 1. Click Customize Report and Filters. 2. Under Transaction Type, click Multiple Transaction Types and from the list that pops up pick Liability Adjustment. This will show you any liability adjustments made within the quarter in addition to your payments. Double check that the liability adjustment is actually needed. If you know you're recorded the deposit in your QuickBooks Desktop, find the deposit and check that the type is specifically LIAB CHK and not just CHK. If the transaction has not been reconciled then you can delete it and record it as a payroll liability check. Previous page

24 Line 11 - Balance Due Balance Due If line 9 is more than line 10, enter the difference on line 11. Otherwise, see Overpayment, later. Never make an entry on both lines 11 and 12. You don't have to pay if line 11 is less than $1. Generally, you should have a balance due only if your total taxes after adjustments and credits (line 9) are less than $2,500. See If line 9 is $2,500 or more, earlier, for an exception. If you were required to make federal tax deposits, pay the amount shown on line 11 by EFT. If you weren't required to make federal tax deposits, you may pay the amount shown on line 11 by EFT, credit card, debit card, check, money order, or EFW. For more information on electronic payment options, go to IRS.gov/Payments. If you pay by EFT, credit card, or debit card, file your return using the Without a payment address under Where Should You File, earlier. Don't file Form 944-V, Payment Voucher. What if you can't pay in full? If you can't pay the full amount of tax you owe, you can apply for an installment agreement online. You can apply for an installment agreement online if: You can't pay the full amount shown on line 11, The total amount you owe is $25,000 or less, and You can pay the liability in full in 24 months. To apply using the Online Payment Agreement Application, go to IRS.gov/OPA. Under an installment agreement, you can pay what you owe in monthly installments. There are certain conditions you must meet to enter into and maintain an installment agreement, such as paying the liability within 24 months, and making all required deposits and timely filing tax returns during the length of the agreement. If your installment agreement is accepted, you will be charged a fee and you will be subject to penalties and interest on the amount of tax not paid by the due date of the return. If you pay by check or money order, make it payable to the United States Treasury. Enter your EIN, Form 944, and the tax period on your check or money order. Complete Form 944-V and enclose it with Form 944. CAUTION: If you're required to make deposits and, instead, pay the taxes with Form 944, you may be subject to a penalty. Continued on next page

25 Line 11 - Balance due continued How QuickBooks populates this line QuickBooks takes the difference between line 8 and line 7. If line 7 is greater than line 8, the amount is entered on line 11. Previous page

26 Line 12 - Overpayment Overpayment If line 10 is more than line 9, enter the amount on line 12. Never make an entry on both lines 11 and 12. If you deposited more than the correct amount for the year, you can choose to have the IRS either refund the overpayment or apply it to your next return. Check only one box on line 12. If you don't check either box or if you check both boxes, generally we will apply the overpayment to your next return. Regardless of any boxes you check or don t check on line 12, we may apply your overpayment to any past due tax account that is shown in our records under your EIN. QuickBooks takes the difference between line 8 and line 7. If line 8 is greater than line 7, the amount is entered on line 12. If line 12 is less than $1, we will send a refund or apply it to your next return only if you ask us in writing to do so. Complete Both Pages You must complete both pages of Form 944 and sign it on page 2. Failure to do so may delay processing of your return.

27 Line 13 - Check One Check One If line 9 is less than $2,500, check the first box on line 13 and go to line 14. If line 9 is $2,500 or more, check the second box on line 13. If you are a monthly schedule depositor, enter your tax liability for each month and figure the total liability for the year. If you don't enter your tax liability for each month, the IRS won't know when you should have made deposits and may assess an averaged failureto-deposit penalty. See section 11 of Pub. 15, section 8 of Pub. 80, or section 11 of Pub If your tax liability for any month is negative, don't enter a negative amount for the month. Instead, enter zero for the month and subtract that negative amount from your tax liability for the next month. CAUTION: The amount shown on line 13m must equal the amount shown on line 9. If you are a semiweekly schedule depositor or if you accumulate $100,000 or more in tax liability on any day in a deposit period, you must complete Form 945-A and file it with Form 944. See the $100,000 Next Day Deposit Rule in section 11 of Pub. 15, section 8 of Pub. 80, or section 11 of Pub Don't complete lines 13a 13m if you file Form 945-A. Adjusting tax liability for the qualified small business payroll tax credit for increasing research activities reported on line 8. Monthly schedule depositors and semiweekly schedule depositors must account for the qualified small business payroll tax credit for increasing research activities (line 8) when reporting their tax liabilities on line 13 or Form 945-A. The total tax liability for the year must equal the amount reported on line 9. Failure to account for the qualified small business payroll tax credit for increasing research activities on line 13 or Form 945-A may cause line 9 to be less than the total tax liability reported on line 13 or Form 945-A. The qualified small business payroll tax credit for increasing research activities applies to the employer share of social security tax on wages paid in the quarter that begins after the income tax return electing the credit has been filed. In completing line 13 or Form 945-A, you take into account the payroll tax credit against your liability for the employer share of social security tax starting with the first payroll payment of the quarter that includes payments of wages to your employees subject to social security tax. The credit may be taken to the extent of the employer share of social security tax on wages associated with the first payroll payment, and then to the extent of the employer share of social security tax associated with succeeding payroll payments in the quarter until the credit is used. Don t reduce your monthly tax liability reported on line 13 or your daily tax liability reported on Form 945-A below zero. Consistent with the entries on line 13 or Form 945-A, the payroll tax credit should be taken into account in making deposits of employment tax. If any payroll tax credit is remaining at the end of the quarter that has not been used completely because it exceeds the employer share of social security tax for the quarter, the excess credit may be carried forward to the succeeding quarter and allowed as a payroll tax credit for the succeeding quarter. The payroll tax credit may not be taken as a credit against income tax withholding, Medicare tax, or the employee share of social security tax. Also, the remaining payroll tax credit may not be carried back and taken as a credit against wages paid from preceding quarters that are reported on the same Form 944 or on Forms 944 for preceding years. If an amount of payroll tax credit is unused at the end of the calendar year because it is in excess of the employer share of social security tax on wages paid during the applicable quarters in the calendar year, the remaining payroll tax credit may be carried forward to the first quarter of the succeeding calendar year as a payroll tax credit against the employer share of social security tax on wages paid in that quarter. For an example see IRS Form 944 Instructions: Continued on next page

28 Line 13 - Check one continued If the amount on line 7 is less than $2,500, QuickBooks checks the first box and does not list the liability amount. If the amount on line 7 is more than $2,500, QuickBooks checks the second box and lists the amount of liability by month. How to verify your QuickBooks Desktop result Pro Tip: These boxes are for when taxes are accrued, not paid, it is based off of the paycheck date. Online: Run a Tax and Wage Summary report. In QuickBooks Online, Select Reports > and search for the Tax and Wage Summary Report. Filter by month and the employee, then click Run Report. Look for the totals under Federal Taxes (941/944) (Federal Withholding, Medicare Company, Medicare Employee, Social Security Company, and Social Security Employee taxes). The totals should correspond to the amount in the "Total liability for quarter" of line 16. Desktop 1. From the Reports menu, choose Employees & Payroll, and then Payroll Summary. 2. Click the Customize Report button. 3. Click the Display tab and then set the date range to the calendar year. 4. In the Display columns by drop-down list, select Month, and clear the Hours and Rate checkboxes. 5. Click the Filters tab. 6. Choose Payroll Item in the Filter drop-down list, and then choose Multiple payroll items in the Payroll Item dropdown list. 7. In the Payroll Item window, select Federal Withholding, Medicare Company, Medicare Employee, Social Security Company, and Social Security Employee. Clear any other selected items and then click OK. 8. Click OK to return to the Payroll Summary report. 9. Ignoring any negative signs, add up each column's amounts for Federal Withholding, Medicare Company, Medicare Employee, Social Security Company, and Social Security Employee taxes. The totals should correspond to the amounts in 13a through 13l. Any of the numbers on the report can be double-clicked to see what transactions contribute to their amounts. Previous page

29 Line 14 - If your business has closed If Your Business Has Closed... If you go out of business or stop paying wages, you must file a final return. To tell the IRS that a particular Form 944 is your final return, check the box on line 14 and enter the date you last paid wages in the space provided. For additional filing requirements, see If your business has closed..., earlier. QuickBooks does not check this box for you. If this is your last or final return, you must manually check the box and enter a date.

30 Part 4 - May We Speak With Your Third-party Designee? May We Speak With Your Third-party Designee? If you want to allow an employee, a paid tax preparer, or another person to discuss your Form 944 with the IRS, check the Yes box in Part 4. Enter the name, phone number, and the 5-digit personal identification number (PIN) of the specific person to speak with not the name of the firm that prepared your tax return. The designee may choose any five numbers as his or her PIN. By checking Yes, you authorize the IRS to talk to the person you named (your designee) about any questions we may have while we process your return. You also authorize your designee to do all of the following. Give us any information that is missing from your return. Call us for information about processing your return. Respond to certain IRS notices that you have shared with your designee about math errors and return preparation. The IRS won't send notices to your designee. You re not authorizing your designee to bind you to anything (including additional tax liability) or to otherwise represent you before the IRS. If you want to expand your designee's authorization, see Pub The authorization will automatically expire 1 year after the due date (without regard to extensions) for filing your Form 944. If you or your designee want to terminate the authorization, write to the IRS office for your location using the Without a payment address under Where Should You File, earlier. QuickBooks does not check this box for you. This section must be filled in manually. If you select No, continue on to Part 5. If you select Yes, fill in the designee's name and phone number and enter in a 5-digit number to be used by the designee as a personal identification number (PIN). To verify your QuickBooks If the amount from line 12 or 13 is incorrect, this line will be incorrect. See the verification instructions for lines 12 and 13, which make up the numbers in this calculation.

31 Part 5 - Sign Here (Approved Roles) Sign Here (Approved Roles) Complete all information in Part 5 and sign Form 944. The following persons are authorized to sign the return for each type of business entity. Sole proprietorship - The individual who owns the business. Corporation (including a limited liability company (LLC) treated as a corporation) - The president, vice president, or other principal officer duly authorized to sign. Partnership (including an LLC treated as a partnership) or unincorporated organization - A responsible and duly authorized member, partner, or officer having knowledge of its affairs. Single-member LLC treated as a disregarded entity for federal income tax purposes - The owner of the LLC or a principal officer duly authorized to sign. Trust or estate - The fiduciary. Form 944 may be signed by a duly authorized agent of the taxpayer if a valid power of attorney has been filed. QuickBooks does not supply any of this information. You can manually fill in the fields for Print Name, Date, Phone, and Title. To verify your QuickBooks If the amount from line 12 or 13 is incorrect, this line will be incorrect. See the verification instructions for lines 12 and 13, which make up the numbers in this calculation. Alternative signature method. Corporate officers or duly authorized agents may sign Form 944 by rubber stamp, mechanical device, or computer software program. For details and required documentation, see Rev. Proc , I.R.B. 82, available at IRS.gov/irb/ _IRB/ar16.html.

32 Paid Preparer Use Only Paid Preparer Use Only A paid preparer must sign Form 944 and provide the information in the Paid Preparer Use Only section of Part 5 if the preparer was paid to prepare Form 944 and isn't an employee of the filing entity. Paid preparers must sign paper returns with a manual signature. The preparer must give you a copy of the return in addition to the copy to be filed with the IRS. If you re a paid preparer, enter your Preparer Tax Identification Number (PTIN) in the space provided. Include your complete address. If you work for a firm, enter the firm's name and the EIN of the firm. You can apply for a PTIN online or by filing Form W-12. For more information about applying for a PTIN online, go to IRS.gov/PTIN. You can't use your PTIN in place of the EIN of the tax preparation firm. Generally, don't complete this section if you are filing the return as a reporting agent and have a valid Form 8655 on file with the IRS. However, a reporting agent must complete this section if the reporting agent offered legal advice, for example, advising the client on determining whether its workers are employees or independent contractors for federal tax purposes. QuickBooks does not supply any of this information. If the form is prepared by a third party, fill out the appropriate information in fields for Paid Preparer Name, Firm Name, Address, City, State, Zip code, Date, Preparer PTIN, and Firm EIN. If you are using QuickBooks Desktop Premier Accountant Edition, this section can be automatically filled in using information located under the Company menu by clicking on My Company and clicking the Auto-fill Contact Info... button.